Englishman Cipriani will be available for the Rebels' Super 15 game against the Brumbies on Friday after missing the match against the Stormers while banned by his team.
Cipriani was also axed from the recent two-week tour of South Africa and trained with the few players left at home after breaching the club's disciplinary code. The controversy prompted reports the fly-half had quit the Rebels but those rumours were dismissed last week, with Cipriani seemingly back in the fold now.
A statement from the Rebels said: "Following detailed consultation between Danny Cipriani, his management, RUPA (Rugby Union Players Association) and the RaboDirect Rebels, it was resolved that Danny's current suspension will be lifted.
"Danny has returned to training for the RaboDirect Rebels and will be available for selection in this week's game against the Brumbies.
"Both parties have agreed that no further public comment will be made and confidentiality will be respected."
Cipriani has experienced a rollercoaster ride since arriving in Australia.
He was fined after reportedly taking a bottle of vodka from a Melbourne nightclub, but went from villain to hero by nailing a match-winning penalty in the Rebels' first ever victory.
The 23-year-old played important roles in Melbourne's two other Super Rugby wins against the Western Force and Hurricanes, but poor defence saw him dropped to the bench.
Cipriani then found himself in more hot water when he and team-mate Richard Kingi broke a team curfew after a loss to the Waratahs in Sydney in late April.
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